1. What’s Happening with STX?
STX’s 2025 semi-annual report revealed net losses on both a consolidated and individual basis, plunging the company into capital impairment. A deficit of ₩179.5 billion raises serious doubts about the company’s ability to continue operations. Furthermore, trading of STX stock has been suspended due to violations of accounting standards, triggering a delisting review. The Korea Exchange will decide on the delisting on August 22nd.
2. Why This Crisis?
STX has a history of struggling with financial restructuring. Continuous operating losses and poor investment management have culminated in the current crisis. While the company launched the ‘TrollyGo’ platform as a new growth engine, the lack of concrete plans and uncertain profitability cast doubt on its ability to improve fundamentals. The situation is exacerbated by external factors such as a weak Korean Won and volatile raw material prices. High interest rates also hinder the company’s ability to raise capital.
3. What’s Next for STX?
The future of STX is highly uncertain. Delisting would result in substantial losses for investors. Even if delisting is avoided, it will take significant time and effort for the company to resolve its capital impairment and restore profitability.
4. What Should Investors Do?
Investing in STX is currently extremely risky. Investors should seriously consider the possibility of delisting and review their investment positions to minimize potential losses. A ‘strong sell’ recommendation is issued, and new investments should be absolutely avoided.
Why is STX facing delisting?
STX is facing delisting due to severe capital impairment and violations of accounting standards. The 2025 semi-annual report shows net losses on both a consolidated and individual basis, with total equity in the negative.
What about STX’s ‘TrollyGo’ platform?
While STX hopes ‘TrollyGo’ will drive new growth, uncertainties surrounding its business plan and profitability make it unlikely to significantly improve fundamentals in the short term.
Should I sell my STX stock now?
Analysts have issued a ‘strong sell’ recommendation for STX. The high probability of delisting and the lengthy recovery process, even if delisting is avoided, make investment in STX extremely risky. Current investors should strongly consider liquidating their positions.
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